Elon Musk breaks ground on new Tesla factory in Shanghai

Elon Musk joined Chinese officials to break ground on a brand spankin’ new Tesla factory in Shanghai Monday. The ‘Gigafactory 3’ in Shanghai will produce Model 3 and upcoming Model Y Teslas sold in China.

Also beginning Monday, Chinese customers will be able to configure and order their Model 3s on Tesla’s Chinese website.

The factory, the new ordering capability, and Musk’s emphasis on expanding the electric car market in China shows that Tesla is at least attempting to move into China in a big way.

“China is becoming the global leader in electric vehicle adoption, and it is a market that is critical to Tesla’s mission to accelerate the world’s transition to sustainable energy,” Musk said, according to a company release. “Gigafactory 3 is another example of Tesla’s commitment to the China market.”

Tesla officially announced plans for the Shanghai factory in July. Against the backdrop of Trump’s trade war, consolidating manufacturing for Chinese customers in China appeared to be a way to avoid higher tariffs on Chinese exports.

In true Muskian fashion, it’s not enough to just have a car manufacturing plant — the factory itself has a brand identity: the Gigafactory. This is Gigafactory 3; the first is outside of Reno, NV, and the second is in Buffalo, NY.

So what the heck is a “Gigafactory”?

In addition to producing cars, Tesla also produces large-scale batteries and solar tiles. Gigafactories not only produce those batteries, they’re also powered by them. Think of it as one fossil-fuel-free Tesla ouroboros.